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CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA ORDINANCE NO.2025-07 AN ORDINANCE IMPLEMENTING A GAS SERVICE FRANCHISE FEE ON NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING GAS SERVICE WITHIN THE CITY OF LAKE ELMO THE CITY COUNCIL OF THE CITY OF LAKE ELMO DOES ORDAIN: SECTION 1. The Municipal Code is hereby amended to include reference to the following Special Ordinance. Subd.1. Purpose. The Lake Elmo City Council has determined that it is in the best interest of the Cityto impose a franchise fee on those public utilitycompanies that provide natural gas services within the City. (a) Pursuant to City Ordinance 2025-04, a Franchise Agreement between the City of Lake Elmo and Northern States Power Company, a Minnesota corporation, its successors and assigns, the City has the right to impose a franchise fee on Northern States Power Company, a Minnesota corporation, its successors and assigns, in an amount as set forth in the fee schedule attached hereto as Schedule A. Subd. 2. Franchise Fee Statement. A franchise fee is hereby imposed on Northern States Power Company, a Minnesota Corporation, its successors and assigns, under its gas franchise in accordance with the schedule attached here to and made a part of this Ordinance, commencing with the NSPM June, 2025 billing month. This fee is an account -based fee on each premise and not a meter -based fee. In the event that an entity covered by this ordinance has more than one meter at a single premise, but only one account, only one fee shall be assessed to that account. If a premise has two or more meters being billed at different rates, the Company may have an account for each rate classification, which will result in more than one franchise fee assessment for gas service to that premise. If the Company combines the rate classifications into a single account, the franchise fee assessed to the account will be the largest franchise fee applicable to a single rate classification for energy delivered to that premise. In the event any entities covered by this ordinance have more than one premise, each premise (address) shall be subject to the appropriate fee. In the event a question arises as to the proper fee amount for any premise, the Companys manner of billing for energy used at all similar premises in the citywill control. Subd. 3. Payment. The said franchise fee shall be payable to the City in accordance with the terms set forth in Section 9 of the Franchise. Subd. 4. Surcharge. The City recognizes that the Minnesota Public Utilities Commission may allow Companyto add a surcharge to customer rates of city residents to reimburse Companyfor the cost of the fee. Subd. 5. Enforcement. Any dispute, including enforcement of a default regarding DOCSOPEN\LA515\ 143\1 007375.vl-1/28/25